Looks like the 110-pip trading range or rectangle that we identified last Thursday is still intact. Again, the rectangle’s resistance area is at the 123.50 minor psychological level while the support area is around the 122.40 handle. Price is currently approaching the rectangle’s support area, so get ready since a buying may present itself soon, especially since stochastic is already in oversold territory. Our main goal here is to trade within the range, but since the moving averages have already been in uptrend mode for a while now, there’s also a chance for an upside rectangle breakout. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
Forex traders bullish on the pair attempted an upside channel breakout, but were promptly faded back into the channel until price reached the bottom of the channel. And as I always keep saying over and over again, one of the most conservative way to play an ascending channel is to look for support and buying opportunities near the bottom of the channel, so keep an eye out for opportunities to go long. Price is already edging upwards and we can see that stochastic is already pointing up again, so forex traders who are bullish on the pair may be in control again. Who knows, maybe they’ll attempt another upside breakout. Afterall, the moving averages are still indicating a healthy uptrend.
The last forex chart pattern for today’s intraday forex charts update is that there symmetrical triangle or bullish pennant, depending on how you look at it. If it’s a bullish pennant then the rally after a breakout could potentially last for around 400 pips since that is the height of the pennant and its pole or mast. But if it’s a symmetrical triangle, then we don’t really have a directional bias since, so a rally or selloff could potentially last for around 200 pips since that is the height of the pattern’s base. Looking at our technical indicators, an upside move seems more viable, however, since stochastic is already pointing up and the moving averages have crossed-over into uptrend mode.
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals